The insurtech sector in the Asia-Pacific (APAC) region experienced a significant decline in funding in 2024, with a massive 61% drop to $193 million from $495 million in 2023, according to the Tracxn Geo Annual Report: SEA InsurTech 2024. This decrease was not isolated, but instead part of a broader global funding downturn driven by macroeconomic uncertainties, inflation, and higher interest rates. This downturn also affected seed-stage funding in the sector, which saw a decrease of 16% to $7.7 million.

Despite the challenges in the insurtech sector, technology continues to evolve and reshape the financial industry within the APAC region. Mastercard, for instance, has introduced TRACE (Trace Financial Crime), an AI-powered network-level solution designed to detect and prevent money laundering. This cutting-edge solution analyzes payment data across multiple financial institutions, providing a holistic view of financial crime beyond the individual banks’ silos.

The rise of real-time payments (RTPs) has facilitated near-instant transactions, but it has also created opportunities for criminals to rapidly move illicit funds across accounts. Traditional detection methods, often slow and fragmented, have struggled to keep up. TRACE addresses this issue by employing advanced data science to trace fraudulent patterns and proactively alert banks. The first rollout of this technology in the Asia-Pacific region is in the Philippines, achieved through a partnership with BancNet, the switch operator of RTP service InstaPay.

Meanwhile, East Ventures, a leading venture capital firm, is capitalizing on the potential of technology and has launched a platform for AI innovators in Indonesia. This initiative brings together AI talents and players in the tech ecosystem to explore new untapped opportunities and accelerate the growth of AI technology in the region.

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